Moderna Inc (MRNA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 27.71 | 86.87 | 42.12 | 26.70 | 15.71 | 31.28 | 57.47 | 51.47 | 63.96 | 170.36 | 172.19 | 206.00 | 200.98 | 210.54 | 181.24 | 258.72 | 27.72 | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 27.71 | 86.87 | 42.12 | 26.70 | 15.71 | 31.28 | 57.47 | 51.47 | 63.96 | 170.36 | 172.19 | 206.00 | 200.98 | 210.54 | 181.24 | 258.72 | 27.72 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.71 + — – —
= 27.71
The cash conversion cycle of Moderna Inc has shown fluctuations over the reported periods. The cycle remained consistently low or even at zero days from March 2020 to September 2020, indicating efficient management of cash, inventory, and receivables. However, starting from December 2020, there was a significant increase in the cash conversion cycle reaching a peak of 258.72 days in March 2021, which suggests potential issues with managing working capital effectively.
Although there were improvements in the cycle in the subsequent periods, with fluctuations, it remained relatively high compared to the initial periods. The cycle decreased to 15.71 days by December 2023, signaling more efficient management of cash, inventory, and receivables compared to the peak in March 2021. The cycle increased slightly to 27.71 days by December 2024 compared to the previous period, indicating a slight extension in the time taken to convert working capital into cash.
Overall, Moderna Inc has shown fluctuations in its cash conversion cycle, with periods of inefficiency followed by improvements. Efforts to manage working capital more effectively seem to have been made, as evidenced by a reduction in the cycle duration. This is an important metric to monitor as it reflects the company's ability to manage its operations efficiently and optimize cash flow.
Peer comparison
Dec 31, 2024